Types Of Product
A product may be defined as everything, both favorable and unfavorable, that a person receives in exchange. A product may be a tangible good like a pair of shoes, a service like a haircut, and idea like “don’t litter”, or any combination of these three. 1. Business Product (Industrial Product). A product used to manufacture other goods or services, to facilitate and organizations operations, or to resell to other customers. Consumer Product. A product bought to satisfy an individuals personal wants. Sometimes the same item can be classified as either a business or a consumer product, depending on its intended use. Examples: Pencils and papers, Computers. There are seven categories of business products:
Major equipment, Accessory equipment, Component Parts, Processed materials, raw materials, supplies and services. There are four categories of consumer products:Convenienceproducts,Shoppingproducts, Specialtyproducts,unsoughtproducts.
- Shopping Product: Is usually more expensive than a convenience product and is found in fewer stores. Consumers buy a shopping product only after comparing several brands or stores on: style, practicality, price, and lifestyle compatibility. They are willing to invest some effort into this process to get the desired benefits. There are two types ofshopping products, homogeneous and heterogeneous.
- Convenience product : Relatively inexpensive item that merits little shopping effort, that means, that consumer is unwilling to shop extensively for such an item. Examples: Candy, Soft drinks, Aspirin, Small hardware items, dry cleaning services, car washing services, etc.
- Homogeneousare product that consumers perceive as basically similar. i.e.: Washers, Dryers, Refrigerators, and Televisions. On homogeneous products consumers typically look for the lowest-priced brand that has the desired features. They might compare for example: LG, Samsung, and General Electric Refrigerators.
- Heterogeneousshopping products are considered as essentially different by consumers. Example: Furniture, Clothing, Housing and Universities. Consumers often have trouble comparing heterogeneousshopping productsbecause of the prices, quality, and features vary so much.
- Specialty product: Is a product that consumers search extensively and are very reluctant to accept substitutes? Omega Watches, Rolls Royce automobiles, and highly specialized forms of medical care are generally considered specialty products. Distribution is often limited to one or a very few outlets in a geographic area. Brand names and quality of service are often very important.
- Unsought products: A product that is unknown to the potential buyer or a known product that the buyer does not actively seek. New products fall into this category until advertising and distribution increase consumer awareness of them. Some goods area always marketed as unsought items, especially needed products “we do not like to think about or care to spend money on.” Examples: Insurance, burial plots and similar items require aggressive personal selling and highly persuasive advertising.
Types of Services
- Consumer services : Consumer servicesprincipal purpose is to provide services to individual consumers who desire them and can afford to pay for them. Two main types of consumer services are retail services and personal services. Consumer Services – Second Definition: The principle purpose of consumer services is to provide services to individual consumers who desire them and can afford to pay for them. Nearly one-half of all the jobs in the United States are in consumer services. For main types of consumer services are retail, education, health, and leisure.
- Retail and Wholesale Services: About 15 percent of all jobs in the United States are in retail services, which provide goods for sale to consumers. Department stores, grocers, and motor vehicle sales and service each account for nearly half of all these jobs; building materials and clothing another one-tenth each. In addition, 25 percent of all jobs are in wholesale services that provide retailers their merchandise.
- Education Services: About 11 percent of all jobs in the United States are in education. Two-thirds of educators are employed in public schools, the other one-third in private schools.
- Health Services: About 12 percent of all jobs in the United States are in health care, primarily hospitals, doctors offices, and nursing homes.
- Leisure and Hospitality Services: About 10 percent of all jobs in the United States are in leisure and hospitality. Three-fourths of these jobs are in restaurants and bars; the other one-fourth is divided evenly among lodging and entertainment.
- Business services Business servicesprinciple purpose is to facilitate other businesses. Producer services and transportation services are two main types of business services. Business Services:The principle purpose of business services is to facilitate other businesses. One-fourth of all jobs in the United States are in business services. Professional services, financial services, and transportation are the three main types of business services.
- Professional Services: About 13 percent of all U.S. jobs are classified as professional services. One-tenth of the jobs found in this sector are in management positions. One-half are in technical services, including law, accounting, architecture, engineering, design, and consulting. The remaining one-half of this sector is in support services, such as clerical, secretarial, and custodial work.
- Financial Services: About 6 percent of all U.S. jobs are in this sector, which is often called FIRE, an acronym for finance, insurance, and real estate. One-half of the financial services jobs are in banks and other financial institutions, one-third in insurance companies, and the remainder in real estate.
- Transportation and Similar Services: Businesses that diffuse and distribute services are grouped as transportation and information services. In the United States about 6 percent of all jobs are in this group of services. One-half of these services are in transportation, primarily trucking. The other half are in information services, including publishing and broadcasting, as well as utilities such as water and electricity. A new kind of transportation
- Public services Public services principal purpose is to provide security and protection for citizens and businesses. In the U.S. about 4% of all workers are in public services not already included in other service categories. For example teachers and other public employees are included; about 10% of U.S. workers are on the payroll of a unit of government. About one-sixth are employed by the federal government, one-fourth by the 50 state government, and three-fifths by one of the tens of thousands of local government. The distinction among services is not absolute.
- Addendum The distinction among services is not absolute. For example, individual consumers use business services, such as consulting lawyers and keeping money in banks, and businesses use consumer services, such as purchasing stationery and staying in hotels. A public service worker at a national park may provide the same service as a consumer service worker at Disneyland. Geographers find the classification useful, because the various types of services have different distributions, and different factors influence location decisions.